8 Million in Captive Premiums | Insurance Agency in Resort Town

8 Million in Captive Premiums | Insurance Agency in Resort Town

Title: Developed Insurance Agency in Resort Town  

Brokerage: Denver Business Brokers Intermediaries

Industry:  Insurance   Location:  Colorado Resort Town                    

Asking Price: $2,400,000.00  Inventory/FFE: Included in Price  

Gross Revenue: $1,020,000.00 | Cash Flow: $300,000.00 | EBITA: $500,000.00 | Real Estate: Lease terms separate

Reap Huge Rewards with Loyal Commercial Clients

Over the past 30 years in this mountain community, this captive agency established many robust relationships with individuals and corporations. By offering superior knowledge and service to their clients the agency retained clients even when competitors underbid premiums. This client loyalty accounts for a high percentage of policy renewal.

Incredible Book of Business:

  • One of the largest Habitational Insurance books of business in Colorado
  • Annual premiums north of $8,000,000
  • Annual gross revenue of about $1,020,000
  • Book of business insures close to $4,500,000,000 (4.5 billion) of capital
  • About 70% of book is comprised of commercial habitational clients, including publicly traded companies; 30% are residential homeowners.
  • 4 lines of insurance with a focus on property and casualty insurance

This agency is so much more valuable than its book of business. The infrastructure includes:

  • 6 licensed agents, all with special skill sets
  • A reputation for service, integrity, and competence
  • A server and other office assets
  • A website with a high volume of traffic and a user friendly interface
  • A system that transformed the time-consuming lender certificate process into a hassle-free, lead generation tool.
  • An automatic system to close 70 % of personal policies for owners of units in buildings insured by this agency.
  • A professional office space facing main street in the beautiful downtown area (lease term negotiated separately)

Enjoy a “Wild yet Sophisticated” Lifestyle:

Don’t be fooled by laid back Western atmosphere of this resort town. The locals include an impressive number Olympic athletes and titans of business. Meetings often start with conversations about the powder levels and secret fly fishing spots and then proceed to talk of 7 figure business deals. Crime is virtually non-existent and the schools are top-notch. While the town is famed for world-class recreation and Western charm, tourism and agriculture support a thriving economy. In fact, the town was named one of the “Top 10 Colorado towns to start a business.”

Opportunities to Expand to Other Sectors:

The new owner could expect to take home close to $300,000 annually simply by maintaining the current business practices. However, an owner with an entrepreneurial spirit could grow the book of business up to 15% annually. Ample opportunity lies in pursuing accounts with restaurants, motels, hotels, workers compensation, and ranches.

The Ideal Buyer:

The ideal buyer will be an experienced agent who loves policy explanation and the great outdoors. The agent should have their series 6 license and be willing to learn the needs of residential management companies. Financing available through reputable companies such as, Oak Street Funding and PPC Loans. This 8M premium book will go fast! To get started on this fabulous new lifestyle and business opportunity call Jay Spencer, Business Broker at 303-290-7449.

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Posted on

March 10, 2017

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